NASCAR demands a major change in its lawsuit against 23XI and FRM

NASCAR recently demanded a major change in the lawsuit against 23XI Racing and Front Row Motorsports. According to a recent report (via ESPN), both the governing body and the Cup Series teams are open to settling. However, they disagree on how the case is moving forward.

The governing body and teams found themselves in this situation after Denny Hamlin's co-owned 23XI Racing and Bob Jenkins' owned Front Row Motorsports refused to sign the new charter agreement. They were the only two teams on the grid out of 15 to deny the notion. Following that, the teams sued the governing body for unfair practices and creating a monopoly.

NASCAR and the Cup Series teams have been negotiating with the assistance of mediator Jeffrey Mishkin, who has extensive experience in resolving major sports-related legal disputes. However, there has been no proven progress; the sanctioning body has requested a new "judicial settlement conference." Reflecting on that, the stock car association wrote:

"The parties' readiness to resolve this matter, along with the interests of others in the sport and the Court to see this case resolved, suggest a judicial settlement conference would be a meaningful way to facilitate a settlement."

As per reports, the teams believe that working with a new mediator and starting over will take more time to settle on the case and is "less likely, not more likely, to lead to resolution." As of now, both sides are open to talking and settling the lawsuit before it goes to trial on December 1, 2025.

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"I believe in the concept of NASCAR’s Charter system": Cup Series team owner Richard Childress supported NASCAR amid the 23XI and FRM lawsuit

Earlier this month, Cup Series team owner Richard Childress sat down with NASCAR analyst Bob Pockrass for an interview amid the ongoing lawsuit. During the interaction, Childress expressed his support for the governing body's charter system to prevent its dismantling.

The ongoing lawsuit could end the charter system, and Richard Childress believes the move could lead to 'uncertainty' for the teams. Following that, Childress supported the charter system under oath and explained:

"As a team owner for many decades, I believe in the concept of NASCAR’s Charter system. Given the challenging business model and economics that Cup Series team owners face, charters are essential to creating enterprise value for teams. The charter system has helped create long-term equity value and has allowed for team equity value to grow. Without Charters, the team ownership model is unsustainable. That is why I remain committed to finding a mutually agreeable solution that will provide permanent charters to all charter holders."

Richard Childress Racing fields two full-time entries in the NASCAR Cup Series, with the former two-time Cup Series champion Kyle Busch piloting the #8 Chevy Camaro ZL1 for the team, and Austin Dillon driving the #3 Chevy.